BRUSSELS -- Auto parts supplier TRW Automotive Holdings Corp. won permission from the European Commission on Wednesday to purchase a 68.4 percent stake in privately held Spanish parts company Dalphimetal.
"The transaction will not significantly impede effective competition in the European Economic Area or any significant part of it, as other large and capable players will continue to operate in the market," the Commission said in a statement.
TRW will pay 113 million euros ($135.4 million) for Dalphimetal with the goal of strengthening its automotive safety business and presence in Europe.
Dalphimetal, based in Madrid, designs, develops and makes airbags and steering wheels for a mix of European automakers.
TRW Automotive will also assume debt totaling 84 million euros, or about $103 million, in a transaction brokered with the founding members of Dalphi Metal Espana SA.
"We believe this acquisition should also better position us to meet the growing demand for safety related products and systems in a very competitive marketplace," TRW Chief Executive John Plant said in a statement when the deal was announced in September.
TRW, based in Livonia, Michigan, said it expects the acquisition will slightly add to earnings beginning in 2006.
Dalphimetal employes about 2,000 people and has production facilities in Spain, Portugal, France and Tunisia.